_________ is made to know liability or expense pertaining to current accounting period.

Provision

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Reserve

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Appropriation

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None

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Solution

The correct option is A Provision
The term provision refers to any of the following amounts :
1. The amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets; or
2. The amount retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy.

Provision is created to cover a loss in the value of assets, or a loss or expenses, the amount of which cannot be determined with substantial accuracy.

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